Zero Hedge....
Russian Bank Halts All Cash Withdrawals
It would appear the fears of a global bank run are spreading. From HSBC's limiting large cash withdrawals (for your own good) to Lloyds ATMs going down, Bloomberg reports that 'My Bank' - one of Russia's top 200 lenders by assets - has introduced a complete ban on cash withdrawals until next week. While the Ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia. Russia sovereign CDS had recently weakened to 4-month wides at 192bps.
Via Bloomberg,
Lender has introduced complete ban on cash withdrawals until end of week, news agency reports, citing unidentified person in call center.Bank spokeswoman declined to comment by phoneMy Bank is top 200 lender by assets: PrimeNOTE: Central bank has revoked about 30 banking licenses since July 1 when Elvira Nabiullina succeeded Sergei Ignatiev as governor, compared with three in the firt half of the year
Interestingly, Russia's biggest lender Sberbank has seen a 8.7% rise in deposits in December... it seems the Russian's are realizing that bank deposits are nothing more than risky loans to highly levered entities...
Info Wars.....
Bank Run Fears Escalate as Russian Lender Bans Cash Withdrawals
Economic jitters continue to spread
Paul Joseph Watson
Infowars.com
January 28, 2014
Infowars.com
January 28, 2014
Fears of bank runs have escalated with the news that Russian lender ‘My Bank’ has banned all cash withdrawals until next week.
Image: Russian Ruble (YouTube).
“Bloomberg reports that ‘My Bank’ – one of Russia’s top 200 lenders by assets – has introduced a complete ban on cash withdrawals until next week. While the Ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia. Russia sovereign CDS had recently weakened to 4-month wides at 192bps,” reports Zero Hedge.
The source of the story is a person working inside the ‘My Bank’ call center, although officials for the bank have refused to comment.
On Saturday it emerged that HSBC was restricting large cash withdrawals for UK customers from £5000 upwards, forcing them to provide documentation of what they plan to spend the money on, a form of capital control that more and more banks are beginning to adopt.
This was followed by the story, which subsequently turned out to be false but caused market jitters nonetheless, that China’s commercial banks had been instructed to suspend cash transfers.
An IT glitch that prevented thousands of Lloyds Banking Group customers from withdrawing cash at ATMs in the UK also contributed to the concerns.
As we reported back in November, Chase Bank also recently imposed restrictions which prevent its customers from conducting over $50,000 in cash activity per month, as well as banning business customers from sending international wire transfers. Financial expert Gerald Celente said the news was a sign that Americans should prepare for a bank holiday.
Questions were already being asked of Chase after an incident last year when customers across the country attempted to withdraw cash from ATMs only to see that their account balance had been reduced to zero. The problem, which Chase attributed to a technical glitch, lasted for hours before it was fixed, prompting panic from some customers.
In November it was also reported that two of the biggest banks in America were stuffing their ATMs with 20-30 per cent more cash than usual in order to head off a potential bank run if the US defaults on its debt.
A letter to customers from December 2013......
http://www.mybank-group.ru/about/novosti/obraschenie-kklientam-moego-banka/
APPEAL TO CLIENTS "my bank"
22.12.2013
Dear Customers!
Recently, some media sources spread false information about alleged problems in the "My Bank" (LLC).
After analyzing the sources of this information and the situation caused panic in the banking market as a whole, The Bank undertook a number of activities in order to protect the interests of all of its clients and minimize the consequences of excitement caused by this information:
- To systematize the process of providing funds necessary cash payments introduced planning clients wishing to terminate the contracts concluded with the Bank;
- To regulate the process uptime of ATMs and offices of the Bank, due to the increased workload, put a limit on cash withdrawals - up to 20 thousand rubles a day;
- For the timely issuance of deposits to the amount of more than 100 thousand rubles organized preliminary record on receipt of cash. Term issue is 5 to 7 days;
At the same time we inform you that:
- Offices "My Bank" (LLC) are operating normally.
- At the end of October 2013 in the "My Bank" (Ltd) was completed on the scheduled inspection by the Central Bank.
- In October and November, three members of the Bank replenish the Bank's liquidity funds in the amount of more than 700 million rubles.
- By the end of 2013 it is planned to increase the capital of the Bank in the amount of 500 million rubles.
- In 2014 it is planned to increase its capital by 1 billion rubles due to the subordinated loan from "FFF FINANCE GROUP BV", which owns 94.81% of shares in the authorized capital of the Bank, and additionally, in the amount of 2.5 billion rubles, due to the direct capital contribution, bringing the Bank's own funds up to 5 billion rubles, with the capital adequacy ratio to 15%.
Management believes that the majority of our customers adequately assess the situation and understand the need for these measures.
According to our estimates, subject to positive momentum from measures adopted, within 2-3 weeks, all restrictions will be removed.
The Board of Directors of "My Bank" (Ltd)
Dear Customers!
Recently, some media sources spread false information about alleged problems in the "My Bank" (LLC).
After analyzing the sources of this information and the situation caused panic in the banking market as a whole, The Bank undertook a number of activities in order to protect the interests of all of its clients and minimize the consequences of excitement caused by this information:
- To systematize the process of providing funds necessary cash payments introduced planning clients wishing to terminate the contracts concluded with the Bank;
- To regulate the process uptime of ATMs and offices of the Bank, due to the increased workload, put a limit on cash withdrawals - up to 20 thousand rubles a day;
- For the timely issuance of deposits to the amount of more than 100 thousand rubles organized preliminary record on receipt of cash. Term issue is 5 to 7 days;
At the same time we inform you that:
- Offices "My Bank" (LLC) are operating normally.
- At the end of October 2013 in the "My Bank" (Ltd) was completed on the scheduled inspection by the Central Bank.
- In October and November, three members of the Bank replenish the Bank's liquidity funds in the amount of more than 700 million rubles.
- By the end of 2013 it is planned to increase the capital of the Bank in the amount of 500 million rubles.
- In 2014 it is planned to increase its capital by 1 billion rubles due to the subordinated loan from "FFF FINANCE GROUP BV", which owns 94.81% of shares in the authorized capital of the Bank, and additionally, in the amount of 2.5 billion rubles, due to the direct capital contribution, bringing the Bank's own funds up to 5 billion rubles, with the capital adequacy ratio to 15%.
Management believes that the majority of our customers adequately assess the situation and understand the need for these measures.
According to our estimates, subject to positive momentum from measures adopted, within 2-3 weeks, all restrictions will be removed.
The Board of Directors of "My Bank" (Ltd)
http://www.cryptocoinsnews.com/2014/01/28/russian-bank-freezes-cash-withdrawals-day-russian-central-bank-warns-bitcoin/
Russian Bank “My Bank” freezes cash withdrawals day after Russian Central Bank warns on Bitcoin
According to a report on Zero Hedge, “My Bank,” one of Russia’s top 200 lenders by assets, has suspended all cash withdrawals. The lockdown is expected to last for a week.
This news follows the recent statement by the Russian Central Bank warning citizens against the speculative and legal risks of Bitcoin.
The Russian Ruble is experiencing downward pressure from the current “risk-off” environment afflicting emerging market economies. It’s possible this currency situation is responsible for the bank freeze.
My Bank shuts down cash withdrawls to prevent a bank run?
This story, together with the looming problems in the Chinese shadow-banking sector as well asHSBC’s recent bottlenecking of withdrawals and Lloyd’s ATM-withdrawal “glitch,” are all raising red flags regarding liquidity flows in the fiat financial system.
The IMF has threatened 10% wealth taxes and the German Central Bank recently proposed “one-time” levies on struggling Euro members. Even Canada’s Central Bank has proposed a bail-in regime. Cyprus is seemingly to be the template for future “resolutions” of Europe’s banking crisis. Even Canada’s
The global economic outlook has begun to sour in 2014 as the wild money printing experiments of central banks reach their limits. With the real economy sluggish and all efforts at meaningful structural reform blocked by the very financial agencies central to the problem, the seizure of private wealth is likely to be the system’s last resort.
Alternative forms of wealth like Bitcoin and precious metals, which offer people protection against wealth confiscation, are increasingly frowned upon by desperate governments.
While fiat cash remains a necessary evil for the majority of transactions, bank saving accounts represent an inflation-underperforming and increasingly exposed store of value. Very few bank depositors realise that, under current financial laws across many nations, their deposts are viewed as unsecured loans made to financial companies. As global stock markets appear toppy and bonds, the traditional “safe harbour” investment, bleed credibility due to government debt expanding beyond the mathematical possibility of repayment, good investment opportunities are scarce.
While it remains to be seen how Bitcoin price will fare in such an environment, it’s doing well so far despite negative news. Any further banking fiascos are likely to bring a fresh influx of Bitcoin entrants.
No comments:
Post a Comment